Collateral Underwriter (CU)

[normando]

Maybe because user of appraisals actually want to be able to read the appraisal report

Fonts can be one step lower especially in filling out peoples names because you can't abbreviate them.

 

[Michigander]

I went to AI Connect and Fannie Mae had a rep there talking about CU. I am not 100% sure I heard him correctly, but my impression was, that their algorithm is more reliable (in their opinion) than appraiser adjustments and that when push comes to shove, they will default to them. This means that if Fannie's algorithm indicates $100 per sqft is the correct adjustment, but the appraiser, through the use of paired sales, grouped data, depreciated cost, sensitivity and whatever other means they use says it is $70 per sqft, Fannie wins. This applies to repurchase demands, but that does not mean it won't apply to other issues as well. I really hope I misinterpreted this comment. Since I am sure that the powers that be at Fannie read these threads, perhaps they can chime in?

 

[Michigander]

Removed because I need to research a bit before I post

 

[djd09]

Since they have Appraiser Quality Monitoring List , i thought the score was an appraiser score not a property score?

 

[Michigander]

Since they have Appraiser Quality Monitoring List , i thought the score was an appraiser score not a property score?

You are correct once I start researching (should do that BEFORE posting I guess) - from the FAQs related to CU

Q12. What is meant by a “CU risk score”? CU provides a numerical risk score from 1.0 to 5.0, with 1 indicating the lowest risk and 5 indicating the highest risk. Risk flags and messages identify risk factors and specific aspects of the appraisal that may require further attention. Details are available in the eLearning course Understanding the Collateral Underwriter Risk Score, Flags, and Messages.

 

[J Grant]

I went to AI Connect and Fannie Mae had a rep there talking about CU. I am not 100% sure I heard him correctly, but my impression was, that their algorithm is more reliable (in their opinion) than appraiser adjustments and that when push comes to shove, they will default to them. This means that if Fannie's algorithm indicates $100 per sqft is the correct adjustment, but the appraiser, through the use of paired sales, grouped data, depreciated cost, sensitivity and whatever other means they use says it is $70 per sqft, Fannie wins. I really hope I misinterpreted this comment. Since I am sure that the powers that be at Fannie read these threads, perhaps they can chime in?

Can you please write to Fannie and get their actual response? Because It sounds to me like you mis interpreted what you heard.

If Fannie "wins" with their algorithm of $100 per sf, they would MAKE an appraiser change their $70 a sf adjustment to $100. That is not what is happening. In fact, if Fannie thought their algorithm was "better", why wouldn't Fannie do its own appraisals, with local people to inspect and photo?

From my understanding, an appraisal is submitted, Fannie compares it other appraisals and its own model . If there is a wider tolerance than what Fannie wants to see ( which I don't know what that tolerance is), then they ask the appraiser to explain. And the appraisal gets sent back with teh explanation. What happens after that is unknown (to me). I do know that whenever I personally got a CU back such as your lot size adjustment is materially different than peers or model, I explained how/why I arrived at my adjustment, and never heard anything back after that . I assume the explanation was accepted and appraisal went on to be accepted.

 

[J Grant]

In the time I have been getting CU feedback from lenders/clients I have never received an appraisal risk score...they must keep it to themselves.

Are appraisers really receiving a risk score when a client asks for explanation from CU feedback ?

 

[Michigander]

Can you please write to Fannie and get their actual response? Because It sounds to me like you mis interpreted what you heard.

If Fannie "wins" with their algorithm of $100 per sf, they would MAKE an appraiser change their $70 a sf adjustment to $100. That is not what is happening. In fact, if Fannie thought their algorithm was "better", why wouldn't Fannie do its own appraisals, with local people to inspect nd photo?

From my understanding, an appraisal is submitted, Fannie compares it other appraisals and its own model . If there is a wider tolerance than what Fannie wants to see ( which I don't know what that tolerance is), then they ask the appraiser to explain. And the appraisal gets sent back with teh explanation. What happens after that is unknown (to me). I do know that whenever I personally got a CU back such as your lot size adjustment is materially different than peers or model, I explained how/why I arrived at my adjustment, and never heard anything back after that . I assume the explanation was accepted and appraisal went on to be accepted.

"Wins" would apply to repurchases I believe. I am hoping some other folks who were there will chime in and tell me if I just heard it/interpreted it incorrectly. This is what I am hoping (that I am wrong).

 

[J Grant]

"Wins" would apply to repurchases I believe. I am hoping some other folks who were there will chime in and tell me if I just heard it/interpreted it incorrectly. This is what I am hoping (that I am wrong).

You should have specified repurchase demand situation,as opposed to regular appraisal feedback, they are vastly different situations.

If an appraisal is part a repurchase demand, I'd assume a field review, desk review. and other scrutiny is applied to it beside a Fannie Mae algorithm.

 

[Michigander]

You should have specified repurchase demand situation,as opposed to regular appraisal feedback, they are vastly different situations.

If an appraisal is part a repurchase demand, I'd assume a field review, desk review. and other scrutiny is applied to it beside a Fannie Mae algorithm.

Fixed it